Collective raises $50 million

Collective, “the first all-in-one online back-office platform for solopreneurs,” has raised $50 million from Gradient Ventures, Google’s AI fund, Innovius Capital, The General Partnership, General Catalyst, QED, Expa, and Better Tomorrow Ventures, among others.

Founded in 2020, the San Francisco-based startup provides business formation, S-election, payroll, tax, and bookkeeping services for the self-employed.

Collective offers a monthly plan that costs $299. There’s also an option to sign up for the year and receive a 15% discount. The package provides access to payroll platform Gusto, which means more business for Next Insurance.

“We’re building the financial operating system for one of the fastest-growing segments of the US economy, the freelance workforce. Businesses-of-One generate $1.4 trillion in revenue yet have been underserved by traditional back-office software and service providers. Their options are to use a patchwork of pricey tools, hire a team of advisors — made harder by a growing accountant shortage — or do all the finance and payroll work themselves. Countless entrepreneurial success stories are being held back by paperwork. AI is allowing us to solve that problem faster and help more solopreneurs launch and grow their businesses.” – Hooman Radfar, CEO and co-founder of Collective.